Now that President Joe Biden’s $1,400 stimulus checks finally appear to be on a fast track in Congress — and hopefully coming to your mailbox soon — consumer advocates are calling on auto insurance companies to provide more stimulus cash of their own.
Many insurers gave customers a temporary discount on premiums in the spring of 2020, recognizing that Americans were suddenly driving less and auto accident rates were plummeting. But that round of relief ended last May.
Since then, as regions across the country have continued to restrict business activity and other parts of daily life, overall driving is still well below pre-pandemic levels, says the Bureau of Transportation Statistics.
And that’s led to staggering increases in profits for auto insurers, according to research by consumer advocates. Progressive reported an 82% increase in net income, while Geico’s pretax earnings tripled during the second and third quarters of 2020, just to name a couple.
Americans might be wondering: Why am I paying full price for insurance again when my car sits in the driveway and my insurance company is raking it in?
Here’s how you can try to get a second round of premium refunds, plus a few other strategies to slash that bill when money is tight.
Auto insurers thrive during the pandemic
The Consumer Federation of America and the Center for Economic Justice sent a public letter to state insurance commissioners, saying auto insurers should be required to deliver a second round of refunds to policyholders.
An analysis by the two groups showed crashes down 31% since the beginning of the pandemic compared to the year prior — with the trend expected to intensify as the virus further spins out of control this winter.
So can I get free money from my insurance company?
An analysis by the U.S. Public Interest Research Group Education Fund took a state-by-state look at how insurance companies repaid parked motorists last spring.
“Regardless how much each company profited, the majority of insurers didn’t give back more than half of one month’s premium,” the consumer watchdog says.
But some companies didn’t issue refunds or cut rates unless customers called and asked.
That means you could get free cash just by contacting your insurance agent. With pressure mounting, your insurer might be open to reviewing your premium, assuming you’re still driving less than ever. Make note of how your habits have changed, such as the distance you’re not driving while you work from home.
Other ways to shrink your premiums, starting today
If your insurance company won’t give you a pandemic discount, there are still a number of ways to cut down on your insurance bill.
Drop optional…
Read More: You might get a COVID ‘stimulus check’ from your car insurance company —